SEC Approves Inclusion of Closed-End Funds in Nasdaq Pricing Service

Washington, DC, October 20, 1998 - The SEC has approved amendments to NASD Rule 6800 that establish minimum requirements for including closed-end funds in Nasdaq's Mutual Fund Quotation Service (MFQS). The Institute's comment letter strongly supported these amendments.

The MFQS currently collects daily price and related data for open-end funds, and publicly disseminates the information to news media and market data vendors on two lists. Funds on a news media list are eligible for inclusion in national newspaper fund tables and Nasdaq's Level 1 data feed service, while funds on a supplemental list are disseminated only over the Level 1 data feed service.

Under the amended rule, a closed-end fund must have $100 million in assets for initial inclusion in the news media list, and $60 million in assets to stay on the media list. A closed-end fund must have $10 million in assets or two full years of operation for initial inclusion in a supplemental list, with no requirement to stay on the list.